Tuesday, June 7, 2016

The concept of the "Seneca Cliff" seems to have gone mainstream. Below, it is mentioned in a recent post by Dennis Coyne on "peakoilbarrell" as an obvious concept. Just as when you say "Gaussian Curve", you don't have to specify what shape the curve has, so it is for the "Seneca Curve". It looks like I started some kind of avalanche with my 2011 post when I introduced the term. See also my blog wholly dedicated to the subject.

Here, the projections by AEO (annual energy outlook) seem to me very optimistic; can production really keep growing until 2035-2040? If that were to happen, however, the subsequent collapse would be truly abrupt.

The scenario above shows an Oil Shock Model with a URR of 3600 Gb and EIA data from 1970 to 2015 and the Annual Energy Outlook (AEO) 2016 early release reference projection from 2016 to 2040. The oil shock model was originally developed by Webhubbletelescope and presented at his blog Mobjectivist and in a free book The Oil Conundrum.

The World extraction rate from producing reserves must rise to 15% in 2040 to accomplish this for this “high” URR scenario. This high scenario is 100 Gb lower than my earlier high scenario because I reduced my estimate of extra heavy oil URR (API gravity<10) to 500 Gb. The annual decline rate rises to 5% from 2043 to 2047 creating a “Seneca cliff”, the decline rate is reduced to 2% by 2060.

The scenario presented above uses BP’s Energy Outlook 2035, published in Feb 2016. This outlook does not extend to 2040, maximum output is 88 Mb/d in 2035 at the end of the scenario. This scenario is still optimistic, but is more reasonable than the EIA AEO 2016. Extraction rates rise to 10.6% and the annual decline rate rises to 2.5% in 2042 and is reduced to under 2% by 2053.

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Featured Post - the basic elements of the Seneca Collapse

This blog is dedicated to the exploration of a phenomenon that we all experience in our everyday life: things tend to go down faster than they go up. I have called this phenomenon "The Seneca Effect," or "The Seneca Trap."